Subsidy purchasing is not free. Most low end markets are hugely bias to pay as you go due to income variances from agriculture incomes. iOS devices in that regard are a much higher price of entry point than alternatives.
Not that I down voted but this is may be why.
Yeah, masklinn, you make a decent point in richer markets, but I think it's unlikely we'll see a $25, no-contract iPhone or iPad, while we've already seen (extremely crappy) Android devices that are remarkably close to that range. frankydp is right in that the free 2-year-contract iPhones are still quite expensive without a contract when we're talking about poorer nations.
Or perhaps I should hedge and say I think Android will get there first, and probably much before. Who knows whether Apple will decide to go after that segment or not in the long run (though it's not exactly their style).
